Chapter 1 Outline: Consumer Behavior and Marketing Strategy
Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select,
secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that
these processes have on the consumer and society.
Applications of Consumer Behavior:
1. Marketing Strategy: We need to identify the NEEDS of the consumers and how to FULFILL those needs
2. Regulatory Policy: Are those needs illegal?
3. Social Marketing: How do we create or alter needs that are positive to our society?
4. Informed Individuals: You become a better consumer yourself.
Marketing Strategy:
Market Analysis Market Segmentation Marketing Strategy Consumer Decision Process Outcomes
Market Analysis Components:
1. The Consumers: What do people want?
2. The Company: Can you produce them?
3. The Competitors: Who are you up against?
4. The Conditions: How are the surroundings? Economy?
Market Segmentation: involves four steps…
1. Identifying product related need sets
2. Grouping customers with similar need sets
3. Describing each group
4. Selecting an attractive segment to serve
Marketing Strategy: This requires the formulation of a consistent marketing mix, which includes the
1. Product
2. Price
3. Promotions (Communications)
4. Place (Distribution), and where would you go to get it?
5. Services
Outcomes:
1. Firm Outcomes – looking for profit
2. Individual Outcomes – individuals are happy
3. Society Outcomes – if consumers have money then our society is doing well
4. Environment
Creating Satisfied Customers: Customer Satisfaction (CS)
Total Product Consumer Decision Process Superior Value Expected Sales Perceived Value Derived CS
Perceived Need: What they want outside of the actual need…
